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Goldman Sachs (GS) Director Rajat Gupta, who has decided not to stand for reelection, is in more trouble. A government probe of Gupta's relationship with Galleon hedge fund manager Raj Rajaratnam has turned up evidence that someone may have leaked Warren Buffett's plan to put $5 billion into Goldman during the financial crisis.

According toThe Wall Street Journal, "The new disclosure stems from a government examination into whether the Goldman director, Rajat Gupta, gave inside information to Mr. Rajaratnam." The paper adds that telephone conversations between the two men were intercepted. Goldman's shares traded as low as $86 on Sept. 18, 2009. The stock soared to $125 by the time the Buffett deal was disclosed to the public.

It is hard to imagine why Gupta, once the head of McKinsey & Co, would engage in activities that could ruin his reputation and perhaps his personal finances. At this point, there is no evidence that Gupta received money from Galleon. That, at least, would have provided a possible motivation.

It Keeps Piling Up

The news could not come at a worse times for Goldman. On April 16, the Securities and Exchange Commission"charged Goldman Sachs & Co. and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages as the U.S. housing market was beginning to falter."